GBP/JPY Slips as UK GDP Disappoints – Triangle Pattern Supports!
Arslan Butt • 1 min read
It was a hard-luck with GBP/JPY signals as the market reversed after the release of worse than expected UK’s GDP figures. The GDP growth pointed to some weakening across the previous three months, as the economy seems to shrink in April. Primary reasons can be a dramatic slump in car production, with uncertainty ahead of the UK’s departure date.
Besides, the demand for sterling dented after April’s manufacturing production also disappointed along with the GDP data. With that, the GBP/JPY pair has entered the oversold zone.
GBP/JPY – Technical Outlook
- Technically, the pair is facing support around 137.500, the double bottom level.
- On the 4-hourly charts, the bullish trendline is also supporting the pair around 137.500.
- What’s more interesting, GBP/JPY has closed a hammer pattern right above 137.500.
- Stochastics and RSI are oversold but may reverse upward for a retracement.
- GBP/JPY may bounce off in case it fails to break 137.500 support level.
GBP/JPY – Trade Plan
Let’s keep an eye on 137.500 as the pair is likely to stay bullish and bearish below the same level. On the upper side, the potential target can be 137.850. Whereas, on the lower side, the violation of 137.500 can extend the bearish trend until 137.